Change of Absorbed Switch Charge Amount for San Antonio Central (SAC)
Announcement Number: IP2013-8
Categories: All Industrial Products,Business News,Construction Products,Consumer Products and Machinery,Environmental Waste,Lumber and Panel Products,Minerals,Non Ferrous Metals,Paper and Fibre Products,Steel and Ferrous Metals
Posted Date: April 10, 2013
In late 2012, the San Antonio Central (SAC) became a switch carrier, published rates for switch charges in a public tariff and began billing linehaul carriers, like Union Pacific (UP), for their switch services. Previous to SAC’s operation as a switch carrier, switching services at the Port of San Antonio (PSA) were performed by an industrial switch railroad and their services paid by PSA tenants. The consequences of this switch carrier conversion make it necessary for UP to revise certain rates to reflect SAC’s switch charge.
Union Pacific reserves the right to provide an allowance for switch charges. When UP elects to absorb switch charges, customers are not billed a separate “Switch Charge” line item on the freight bill. When Union Pacific provides such an allowance, the switch charges are still considered in the price setting process, but they are reflected in the linehaul rate. Currently published rates with a switch charge allowance do not reflect the addition of SAC’s new switch charge.
On May 1st, Union Pacific Railroad will adjust affected documents and rates to account for the SAC’s switch charge. In most instances, adjustment will be made specifically to the switch charge allowance for particular lanes served by SAC. Linehaul rate adjustments may occur in rare cases.
UP’s portion of your rate is not changing as a result of this action. UP is revising price documents to reflect SAC’s switch charge, which facilitates UP’s role in billing, collecting and remitting the switch charge on the SAC’s behalf.
Affected rates have been adjusted to reflect the change and are available for your review in UP’s Prices and Price Documents Inquiry Tool. For notification of availability of prices and future changes, go to MyUPRR, choose "Change" from the Notifications section in the left navigation bar, and then select "Price Documents".
We are working every day to deliver a competitive product that provides value for you. Thank you for shipping with Union Pacific.
If you have any questions please contact your Union Pacific representative.